Page 23 - investor presentation

New Energy SOCAR 5 Mobility

Deal Making (’15 ~ ’17) Value Up (’17 ~ on-going)
Expansion to Malaysia SE Asia Platform Development
Confirmed investment opportunities in local mobility services in Korea
through SK Networks, Korea’s No. 1 rent-a-car company
Target • Mobility services in Korea reduced the younger generation’s willingness to buy car Based on SK’s regional networks in SE Asia, identified Malaysia as the growth region to
Sector significantly expand SOCAR’s car-sharing business in ‘17
• Identified early growth potential in mobility services with dominant subscriber base in
Korea to grow to become a super-app (integrated mobile platform with mobility, fintech, • Malaysia lacked public transportation infrastructure and car purchase price was higher as compared to
delivery, etc) their income level, mobility services began to rapidly grow such as Grab and Uber
• Based on Malaysia local network and mobility investment experiences, made quick decision to expand
to Malaysia by setting up JV with SOCAR (SK 60%, SOCAR 70%)
Leveraged SK Networks and SK Telecom’s platform business expertise to
identify investment opportunity in SOCAR, Korea’s No. 1 car-sharing company Supported value-up activities by recruiting external mgmt. professional in local market
Deal
Sourcing • Established in ‘11, SOCAR was subscribed by substantial young generation customer base, • Hired 30-year old ex-CEO of Uber Malaysia as a CEO of SOCAR Malaysia (Leon Sing Foong) and
implying growth potential to become a mobile platform service provider in longer term
delegated to local management team to leverage their local expertise and experiences
• Expressed interests in participating SOCAR’s Series B funding, but its founder was • Local mgmt. team leveraged local financing company to lease car for early entrance and used iconic
skeptical of SK’s participation as a strategic investor high-end cars (BMW/Mini) to attract younger generation as loyal customers
• Expanded business model from B2C to P2P, and became a dominant market leader with 90% market
share in less than a year from launching Malaysian operation
Convinced Founder with SK’s strategic R&C to secure investment opportunity
Category # of car registered Market share Follower (2 )
nd
• Strategic R&C includes discount at SK-operated gas stations, car navigation installation,
Deal loyalty program at SK Telecom, dedicated parking lot for SOCAR at SK Group-owned
Review buildings, etc B2C 2,300 88% Gocar 300 vehicles
& • Acquired 22% stake to become the 2 largest shareholder in ‘15, and made additional
nd
Execution investments in ‘17 to remain the status P2P 4,500 92% Kwikcar 400 vehicles
Post investment by SK, SOCAR grew to become a dominant market leader in
Korea, and valuation up by 6 times to U$ 1.5 bn (vs. $260m upon investment)
Based on Malaysian success case, confirmed the growth potential of SE Asia mobility
platform services and expanded to adjacent countries
No. of Domestic Car Registered 18,000
by Car-sharing Company • Expanded to Indonesia (‘Dec 20) and Thailand/Vietnam (‘22) based on P2P business model
14,000 • Plan to launch integrated SE Asia Mobility Platform services
11,000 2x 1. Expanding asset-light business model such as P2P and B2C with local rent-a-car companies/dealers
SK Investment 10,000
7,500 2. Expanding service areas such as insurance and private chauffer services for P2P customers
6,400 Follower
3,300 (Greencar)
1,865 Valuation up by 2 times in less than 2 years, given strong growth potential (Sep ‘21)
100 400
• 2 round funding at pre-money valuation of U$200M (as compared to U$118M for 1 round in Jan ‘20)
st
nd
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 • Plan to IPO in ’25 for U$1bn valuation (based on U$500M GMV and 3x multiple based on peers)

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